Cyfrowy Polsat S.A. Unsponsored ADR

Polsat Plus reported Q1 2026 revenue of over PLN 3.6 billion, up 3% year on year. EBITDA was PLN 847 million, up 4.7% year on year, and net profit increased by more than 54% to PLN 134 million. Free cash flow for the last 12 months was almost PLN 1.2 billion, up nearly 63% versus the end of 2025. Net debt to EBITDA excluding project financing increased to 3.68x from 3.59x at year-end, mainly because of the PLN 590 million payment for the 900 MHz concession. Management did not give consolidated quarterly revenue or EBITDA guidance, but reiterated green energy EBITDA guidance of approximately PLN 400 million for the year and said energy CapEx should not exceed PLN 200 million.

The lead strategic message was that recent changes in offers, operations, and organization are starting to show up in results. Management said the new multiplay offer is strengthening customer value and market position, while the group is entering a more predictable phase in renewables after completing the intensive investment cycle. They also emphasized a broader strategic review of assets and said a long-term strategy will be presented by the end of 2026, including targets for telecom, media, green energy, real estate, and financial policy.

The CFO said Q1 was a very good quarter, supported by top-line growth plus disciplined cost control and optimization. She pointed to EBITDA of PLN 847 million, net profit of PLN 134 million, and nearly PLN 1.2 billion of free cash flow over the last 12 months, while noting that free cash flow after interest was slightly negative because interest paid and leasing after hedges exceeded PLN 1.2 billion and the group made about PLN 800 million of spectrum reservation payments. CapEx remained contained at PLN 195 million in the TMT business, or 6% of revenue, while green energy CapEx was only PLN 31 million, about 5x lower year on year, and should not exceed PLN 200 million for the full year. She also said the weighted average cost of debt fell slightly to 6.5%, and the group will repay PLN 622 million under its senior facilities agreement by the end of 2026.

The only substantive analyst question asked about the improvement in green energy and expectations for the rest of the year. Management said it still expects approximately PLN 400 million of EBITDA from the segment and does not see a reason to change that guidance, but warned that renewables are seasonal, with Q2 and Q3 typically weaker for wind and fourth-quarter performance and energy prices still uncertain. A second question asked whether the strategy presentation had slipped from autumn; management replied that the strategy will be presented by the end of 2026 and that the exact date has not been set, but it will be after the summer.